MUMBAI: There’s trouble brewing at the Facebook group. Mike Krieger and Kevin Systrom, the co-founders of the photo-sharing app Instagram which was acquired by the social media site in 2012, have decided to leave the company. The duo have put down their papers and will leave the company in a few weeks, adding to the challenges facing Instagram’s parent company, Facebook.
In a statement issued by Krieger, he informed Instagram’s team about their decision to leave the company. While he did not give a reason for stepping down, he said: “We’re planning on taking some time off to explore our curiosity and creativity again. Building new things requires that we step back, understand what inspires us and match that with what the world needs; that’s what we plan to do.”
Their departure adds to questions about Instagram’s future as concerns about Facebook’s approach to user data and foreign interference begin to take a toll on business.
The resignation of Instagram founders is an echo of the exit of Whatsapp founder Jan Koum who resigned from the company in April after his rising concern about Facebook’s approach to user data.
Facebook acquired Instagram in April 2012 for $1 billion and WhatsApp in 2014 for a steep $19 billion.
Tag: Jan Koum
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Instagram co-founders resign from Facebook
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Facebook buys WhatsApp for a whopping $19 billion
MUMBAI: WhatsApp is an application that has seen exponential growth in the five years since its launch and it has become the most popular means of communication through mobile phones. In a deal announced today, popular social media website Facebook has acquired the messaging application for a whopping $19 billion.
As per the terms of the transaction, $4 billion will be paid in cash to WhatsApp shareholders, $12 billion in Facebook shares and $3 billion in restricted stock units that will vest in the owners and employers of WhatsApp over four years after the deal is completed after regulatory approvals. WhatsApp co-founder and CEO Jan Koum will be joining the Facebook board of directors.
After the acquisition, WhatsApp will continue to operate independently and will continue its policy of no advertising. Currently, the application has 450 million users and is adding a million users each day. A release from Facebook says that the acquisition supports Facebook’s and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably.
“WhatsApp is a company of really hardcore engineers who are obsessing over perfecting messaging, not adding a lot of bloated features into a messaging app. Over time, I think people are going to pay for that,” said Facebook founder and CEO Mark Zuckerberg.
Facebook was advised by Allen & Company LLC and Weil, Gotshal & Manges LLP and WhatsApp was advised by Morgan Stanley and Fenwick & West, LLP.
Koum said, “WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”